Business »  Topic »  Interest rates on loans against shares surge up to 300 bps as lenders turn risk averse: Report

Interest rates on loans against shares surge up to 300 bps as lenders turn risk averse: Report


A weak mutual funds (MFs) space and struggling non-banking financial companies (NBFCs) have triggered the surge as stakeholders turn risk averse

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Crisis in the financial sector and multiple defaults have spurred a 300 basis points (100 bps=1 percentage point) spike in interest rates on loans against shares (LAS), reports The Economic Times.

While the Reserve Bank of India (RBI) cut the repo rate by a cumulative 110 bps over the past four policies, interest rates on LAS shot up to 10-15 percent from 8-12 percent three months back.

A weak mutual funds (MFs ...


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